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Seoul Mayor Criticizes South Korean Government for Allowing Leveraged Products to Impact Stock Market

BlockBeats News, July 17th, according to Yonhap News Agency, Seoul Mayor Won Soon Park criticized the leveraged derivative issues that caused a significant turmoil in the South Korean stock market, as well as President Jae-myung Lee's proposal of "active debt relief" policy, urging the government to promptly come up with fundamental measures.

He pointed out that the South Korean KOSPI index has triggered the circuit breaker mechanism 37 times this year, surpassing the record of 26 times for the entire year of the 2008 global financial crisis. Mayor Park criticized, "The government knew full well about the immense risk of a single stock leveraged derivative product but still approved its listing, stood by as the assets of retail investors kept evaporating, and ultimately led to the current situation."

Fonte:BlockBeats

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